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The Pace and Scale of Change Is Unprecedented The pace and scale of change is unprecedented... We recently held our FutureWorks Global Employer Forum in London to discuss the megatrends that will impact global businesses and the future of work. Together with HR and employment leaders from some of the most innovative companies in the world, as well as leading academics and thinkers, we looked at how global employers can embrace the opportunities and manage the coming shocks. Here we share highlights from our two days together. Baker McKenzie Global Employer Forum 2017 | 1 As our host and keynote speaker Professor Ian Goldin noted, the pace The FutureWorks agenda: and scale of change affecting all of us is unprecedented since the NEW ERA Renaissance. For this year’s FutureWorks event in London, we looked at the large-scale trends that will change our world: high birth rates in A second Renaissance? Risks and rewards in an age of discovery. developing markets, an aging population in the West, climate change Is the world flat? Globalization, talent and the dominance of cities. and the power of place. We also explored the changing nature of work itself: the rise of Is the employer-employee relationship over? The new talent exchange. contingent workers, increased demand for flexible working, changing skills requirements and talent pools. We heard how companies are NEW ACTIONS adapting their strategies to engage diverse talent and unlock future productivity. Findings from the World Economic Forum’s study, “The future of jobs.” Finally, we considered how new technologies from machine learning to Do businesses need a social license to biomedical enhancements are transforming the workplace and raising operate? New era, new actions. Is a new global diversity mindset ethical questions of their own. essential to the future of work? Diversity and inclusion strategies to These disruptions pose significant challenges. However, we live in an drive innovation. exciting time full of opportunities. Together, we can come up with answers for the big social, environmental and economic challenges of NEW TECHNOLOGY our time and prepare our organizations to thrive. Are you bridging the digital generation gap? Talent in the digital world. GUENTHER HECKELMANN Just say no to drugs? Biomedical enhancements at work. Partner, Global Chair, Employment & Compensation Group, Will machines rule the workplace? Baker McKenzie Artificial intelligence (AI), bots and future skills. Baker McKenzie Global Employer Forum 2017 | 2 NEW ERA Our world is interconnected. Six billion people own a smart device. Around 70% of the world’s population lives in a city or within one hour’s reach of a city. Companies and We are all connected. The challenge is not how to individuals are discovering new ways to work together. Our FutureWorks program disconnect but how to build resilience. looked at the opportunities and risks of a new era — the megatrends that will affect global business and where and how we work. Professor Ian Goldin, Professor of Globalisation & Development, Oxford University A second Renaissance? We began our FutureWorks Forum with a keynote address from Ian Goldin, Professor of Globalisation & Development at the University of Oxford and former Vice President of the World Bank, examining the megatrends shaping our collective future: shifting economic power, changing demographics, disruptive technologies and systemic risks. The extraordinary growth of the past 30 years is due to unprecedented globalization and accelerating technological change. The speed, scale and complexity of this integration have far-reaching implications for business and individuals and are dramatically changing the nature of work and employment relations. The drivers of global growth are changing — emerging markets are likely to continue to grow at high levels in the coming decades. Rising life expectancy and collapsing fertility around the world will have dramatic consequences for pensions, retirement and employment patterns. Meanwhile, advances in artificial intelligence and robotics are transforming the nature of work and have the potential to replace significant numbers of jobs and widen inequality. Globalization spreads not only opportunities but also creates systemic risks. Pandemics, cyber attacks, climate change and financial contagion are among the systemic risks increasing uncertainty. This is associated with growing extremism and a rise in protectionism and nationalism which threatens to reverse integration and globalization. The pace of change is accelerating and so are the uncertainties. Baker McKenzie Global Employer Forum 2017 | 3 Factors that will impact tomorrow’s HR and legal policies: Economic and New technologies: Shifts in relationships Migration and Shortages of new skills, Inadequate demographic trends: between employer mobility: too many old skills: governance: and employee, between governments and citizens, between generations: In the West, the median We are interconnected Inequality is rising as Cross-border and intra- Studies suggest that There is no suitable age of the population and dependent on economic benefits are country migration has with the onset of global governance to is rising, so the elderly technology more flowing to cities, to fuelled innovation. Half machine learning, we manage the challenges will own more assets than ever, but this global corporations and of all new US patents will delegate most arising in this new era. and have a greater say can be turned against to older generations. are awarded to first- computational tasks to in politics. At the same us – cyber risks and or second generation computers, while human time, global economic pandemic diseases are immigrants to the judgement, wisdom growth rates are real risks. country. and intuition will be the expected to be highest on-demand skills of the in China, East Asia and future. India – this will shift economic power to the East. Baker McKenzie Global Employer Forum 2017 | 4 Is the world flat? To do the most imaginative, thoughtful work, Thomas Friedman and others have argued that the world is becoming flat, with globalization and new technologies connecting knowledge pools and resources around you need “thick” ways of working. Somewhere the world. We are seeing the tremendous benefits of this connectivity — companies teams can come together. can draw on international talent, and individuals have the flexibility to work where and when they want. Charles Leadbeater, author, thinker and strategic adviser on innovation At the same time, location and place matter. The share of the world’s population living in urban areas, just 3% in 1800, is now 54% (and expected to increase to 66% by 20501). Companies also continue to see the benefits of bringing people together, with many investing in new spaces in major cities to attract talent and encourage collaboration. These more unstructured and dispersed ways of working will require HR and business leaders to address new challenges, including how to instill company values and culture across locations, and how to build effective teams with employees and workers who may never meet in person. Teams want psychological safety, regardless of where they work. Is the employer-employee relationship over? The war for talent is over. The employee won. Globalization and technological forces are disrupting traditional work models. The job-for life-model is over, and non-standard employment has become a feature of labor markets They demand from us the same level of choice around the world. and service as they do as consumers. Millennials Between 2005 and 2015, all US job growth was in temporary, part-time, freelance, are less interested in pensions and other benefits and other “contingent” work. Workers from all manner of industries, skill levels, and geographies are enjoying more creative working models. Employers searching for talent like equity or stock options. They value choice, will need to think more broadly about their workforce and come up with new strategies to autonomy, growth and purpose. attract and manage workers who are not their employees. Nate Boaz, Senior Managing Director for Talent Strategy Similarly, employees are switching jobs more often, making it difficult to build a stable and Leadership Development, Accenture talent pipeline. HR leaders are looking at new ways to build loyalty, from flexible working and leadership opportunities to strong values and a sense of purpose. People want a common purpose, regardless of whether they are permanent employees or contingent workers. Baker McKenzie Global Employer Forum 2017 | 5 NEW ACTIONS The increasing complexity of our world will demand new actions from business. Change in demand for core work-related skills, 2015 - 2020, all industries Shifting employment patterns, including changes in types of jobs and skills Share of jobs requiring skills family as part of their core skill set required, are requiring companies to take an active role in upskilling current workers and preparing the next generation workforce. Demographic and socio- economic drivers — climate change, resource constraints, inequality, longevity Scale of skills Current and aging societies — are compelling companies to take a more proactive demand in 2020 2020 approach to solving the world’s biggest challenges. And workforce strategies Cognitive abilities 15% 52% to address diversity and the gender gap will become even more critical to business success. Systems skills 17% 42% Complex problem solving 36% 40% Do we need a new kind of workforce? Content skills 10% 40% Technological,
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